A Theory On the Tea Party Republicans and the Debt Ceiling, Part 2
Yesterday I wrote a quick post about how the Tea Party wants us to default:
Defaulting on our debt would make it much, much harder for the government to borrow in the future because investors would be much less reluctant to hold U.S. Treasuries.
Making it harder to borrow would make it harder for the government to spend money which, in turn, would require lower taxation.
A part of me thinks this is the logic behind the Tea Party Republicans. It makes sense in their twisted, anti-taxation minds.
What I don’t think they understand is that there has been a movement under way for some years among right-wing economists and activists not merely to default on the debt, but even to repudiate it.
There are still many in the South, where the Republican Party is now based, whose hostility to the national debt traces back to those days.
In his 1987 essay, “The Ethics of Debt Default,” Buchanan made an argument often repeated by libertarians and Tea Party members: if the Treasury were to default, no one would ever lend it money again, thus imposing a balanced budget; the government could only spend as much as tax revenue permitted.